In a perfectly competitive market, when the price is greater than the minimum average total cost for all firms:
A. positive economic profits are being earned.
B. firms will enter, causing the price to increase.
C. firms will exit, causing the price to drop.
D. None of these is true.
A. positive economic profits are being earned.
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What will happen to the exchange rate between the euro and the U.S. dollar if U.S. interest rates increase?
What will be an ideal response?
The highest tariff rates of the twentieth century in the United States arose as a result of which law?
A) the Robinson-Patman Act B) the Tariff of Abominations Act C) the Wheeler-Lea Act D) the Smoot-Hawley Act
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.
An import quota is
A. a tax on imported goods. B. revenue producing for state governments but not the federal government. C. a limit on the quantity of foreign goods that can be sold in a nation's domestic market. D. deflationary.